Launched in 2008 and implemented by the Khadi & Village Industries Commission (KVIC), the Prime Minister’s Employment Generation Programme (PMEGP) scheme supports aspiring entrepreneurs to set up micro units and manufacturing and service sectors. Implemented by the MSME Ministry through the Khadi and Village Industries Commission (KVIC), the scheme facilitates bank-finance subsidy from 15 per cent to 35 per cent for loans up to Rs 50 lakh for setting up a manufacturing unit and Rs 20 lakh for a service unit.
According to the official data, Rs 3,093 crore subsidy was provided under the scheme in FY24 to help set up 89,118 units vis-a-vis Rs 2,722 crore subsidy in FY23 for 85,167 new units.
Importantly, in 2022, the government had extended PMEGP over the 15th Finance Commission Cycle from 2021-22 to 2025-26 with an outlay of Rs 13,554.42 crore.
Here is a quick guide to applying for the scheme online:
- Visit http://www.kviconline.gov.in/pmegpeportal/pmegphome/index.jsp and click on the box ‘Application for New Unit’
- The form PMEGP ONLINE APPLICATION FOR INDIVIDUAL APPLICANT will come up
- Enter your Aadhaar number or EID number in case you have enrolled for Aadhaar but haven’t received it yet
- EID is a 14-digit number displayed on the top of your Aadhaar enrolment/update acknowledgement slip
- Enter your name and sponsoring agency among KVIC, KVIB, DIC and Coir Board
- Select the agency you want to submit your application
- Fill in other details including state, district, sponsoring office, legal type, qualification, address, unit location, activity type (manufacturing/service/trading), project cost, bank details and more
- Accept the declaration and click on ‘Save Applicant Data’
- Upload documents for final submission of application
- After the final submission of the application, the applicant ID and password will be sent to your registered mobile number
- Fill up the score card, verify your details and submit them
- Your application is submitted and can be tracked for disbursement of the loan